29 a manufacturing company has actual overhead of 570 000 budgeted overhead of 620 0 4315142

29) A manufacturing company has actual overhead of $570,000, budgeted overhead of $620,000, and budgeted 18,000 direct labour hours. Management believes that direct labour hours are the best allocation base to use for allocation of overhead. Actual direct labour hours were 20,000 hours.

Assuming that the company used normal costing methods for allocation, and has the following account balances in its general ledger, what are the adjustments for each account using the proration method based on the amount of manufacturing overhead included in each account balance before proration?

AccountManuf OVH

BalanceIncludedAdjustment

Work-in-process control$62,000$12,400________

Finished Goods$91,000$16,380________

Cost of Goods Sold$1,500,000$330,000________

30) The Dougherty Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4,000 machine hours in Department 100 and 8,000 direct manufacturing labour hours in Department 200. The budgeted manufacturing overheads for the month were $57,500 and $62,500, respectively. For Job A, the actual costs incurred in the two departments were as follows:

Department 100Department 200

Direct materials purchased on account$110,000$177,500

Direct materials used 32,50013,500

Direct manufacturing labour 52,50053,500

Indirect manufacturing labour 11,0009,000

Indirect materials used 7,5004,750

Lease on equipment16,2503,750

Utilities1,0001,250

Job A incurred 800 machine hours in Department 100 and 300 manufacturing labour hours in Department 200. The company uses a budgeted indirect cost allocation rate for applying overhead to production.

13 process maps are used a to make investment decisions regarding capital assets b a 4308690

13) Process maps are used ________.

A) to make investment decisions regarding capital assets

B) as a guide for strategic decisions

C) as a tool for managers to understand operations

D) for operational control

14) Slocum Company has determined the following information about a new product. The manufacturing process used for the product is very complex and it has a higher proportion of indirect costs than direct costs. The company wants a 100% markup on cost. The following data is available:

Product cost according to traditional costing system$4.00 per unit

Product cost according to activity-based costing system$7.00 per unit

What price per unit should Slocum Company use for this new product?

A) $4.00

B) $7.00

C) $8.00

D) $14.00

15) Fandry Company has obtained the following data concerning a new product:

Production Costs, Using traditional costing method$3.00 per unit

Production Costs, Using activity-based costing method$5.00 per unit

Nonproduction Costs, Using activity-based costing method$2.50 per unit

Fandry Company wants the price of the new product to cover all costs plus a 100% markup. The production process used for the low volume product is very complicated and it has a higher proportion of indirect costs than direct costs.

What price per unit should Fandry Company charge for the new product?

A) $6.00

B) $10.00

C) $11.00

D) $15.00

16) Traditional costing systems generally assign only production costs to products.

17) Traditional costing systems generally allocate nonproduction value-chain costs to products.

18) Sealing Company manufactures only one product that is available in both a Deluxe model and a Regular model. The company has manufactured the Regular model for years and the Deluxe model was recently introduced. The company is concerned about the accuracy of its costing system because profits are declining since the Deluxe model was introduced.

Indirect production costs are assigned to the products using direct labor hours. For the current year, the company estimates $2,000,000 of indirect production costs and 40,000 direct labor hours. They expect to produce 5,000 units of the Deluxe model and 40,000 units of the Regular model. The Deluxe model requires 1.6 hours of direct labor time per unit and the Regular model requires 0.8 hours. Other costs are as follows:

Costs             Deluxe Model    Regular Model

Direct materials$150$112

Direct labor$16$8

Assume the company's indirect production costs can be traced to four activities with the following cost drivers:             

Activity (Cost Driver)                           Costs

Purchase orders (number of purchase orders)$84,000

Rework orders (number of rework orders)$216,000

Product testing (number of tests)$450,000

Machining (number of machine hours)$1,250,000

DeluxeRegular

Cost Drivers                  Model       Model

Number of purchase orders400600

Number of rework orders200600

Number of tests4,0006,000

Number of machine hours20,00030,000

Required:

A) Assume direct labor hours are the only cost-allocation base. What is the cost to manufacture one unit of each model?

B) Assume the activity-based costing method is used. What is the cost to manufacture one unit of each model?

C) Based on the results obtained from the activity-based costing method, what are the implications for pr

159 using an internet search engine search for the terms big bang erp identify at le 4315653

159.Using an internet search engine, search for the terms “big bang” + ERP. Identify at least one company that represents a success story with regard to this ERP implementation method (other than Marathon, as described in the Real World Example). Also identify at least one company that experienced problems with this approach (other than the city of Tacoma, as described in the Real World Example).

160.Access the web site at and find an article titled “. Briefly describe the reasons for an ERP implementation. Discuss whether the points in this article match with concepts in this chapter.

1 5 distinguish among corporate governance professional codes of conduct ethics and 4315213

1.5   Distinguish among corporate governance, professional codes of conduct, ethics, and corporate social responsibility.

1) An accountant, as a member of a professional organization, must follow only those ethical requirements as are prescribed by the organization they belong to, such as the Chartered Professional Accountants of Canada.

2) CPAs are required to follow the formal codes of ethical conduct provided by their professional association.

3) Management accountants have important ethical responsibilities that are related to competence, duty of care, objectivity, and professionalism.

4) If a managerial accountant were not keeping up with current developments in managerial accounting, that behaviour might violate the enabling competency guideline of CPA ethical behaviour.

5) Corporate social responsibility (CSR) is the legislated integration of social and environmental

concerns into business decisions.

6) Sustainability accounting focuses on reporting both financial and nonfinancial information on activities that impact society, the environment, and the financial (or, economic) aspects of an organization's performance to an organization's stakeholders.

7) The Global Reporting Initiative has developed and supports several frameworks, however, the most common form of sustainability accounting is the Balanced Scorecard.

8)  Corporate social responsibility is

A) legislated by government and enforced by the courts.

B) the same as code of ethics passed by the board of governors of a company.

C) the mandatory integration by companies of social and environmental concerns into their business operation.

D) the voluntary integration by companies of social and environmental concerns into their business operation.

E) codified in international trade agreements.

9) Which of the following would likely constitute a breach of ethics for a management accountant?

A) to omit pertinent information from a report because it is personally unfavourable

B) to consider disclosing confidential information in order to further your own career

C) to consider disclosing confidential information (ie gained from a third party) in order to assist your employer/client

D) to report the unethical actions of another party, with the expectation that this will further your own career

E) to be disruptive in a meeting

10) Corporate governance

A) relates to the role of the corporate governor.

B) comprises activities undertaken to ensure legal compliance with laws.

C) is legislated by the federal government.

D) relates only to the regulations provided by the Canadian Securities Administrators.

E) is a voluntary system of compliance approved by each company's board of directors.

11 a google account is not essential to edit google docs 12 version management syste 4308826

11) A Google account is not essential to edit Google Docs.

12) Version management systems provide version control.

13) In version-control systems, shared documents are often placed in shared directories called libraries.

14) Workflows cannot be defined for multistage business processes.

15) With SharePoint, it is possible to filter task lists to show only non-completed tasks.

16) Microsoft Project Server is a desktop program that generates files that can be accessed only by one user at a time.

17) With the minimal collaboration tool set, the participant should be able to collaborate with his team, though he will get little support from the software.

18) The good collaboration tool set includes content management and control, workflow control, online meetings in which participants can view shared whiteboards, applications, and monitors.

e xercises ex 11 75 componentization and depreciation of pp e assets you are the acc 4315350

Exercises

Ex. 11-75 Componentization and depreciation of PP&E assets

You are the accountant for a manufacturing company. You have just been advised of the acquisition of a new machine. You have received a memo which only gives you the following information:

Grinding Equipment

Model:XZ-1-1000

Cost:$1,250,000

Instructions

To be able to properly account for this asset, list and briefly describe what additional information you require.

Ex. 11-76Definitions

Provide clear, concise answers for the following:

1.Define depreciation.

2.Define depreciation accounting.

3.Does depreciation accounting provide cash? If not, what does provide cash? In relation to cash, what does depreciation accounting do?

multiple choice questions 1 when assessing earnings quality financial analysts are c 4315551

MULTIPLE CHOICE QUESTIONS

1. When assessing earnings quality, financial analysts are concerned that management may attempt to manipulate information to make earnings appear better or worse than they really are. Which of the following would NOTsuggest poor earnings quality?

a) reduction of the allowance for doubtful accounts

b) consistent application of GAAP

c) significantly higher net income than cash flows from operations

d) reliance on share issuances to offset repeated negative cash flow from operations

2. Which of the following is a limitation of the balance sheet?

a) Many items that are of financial value are omitted.

b) Judgments and estimates are used.

c) Current fair value is not reported.

d) All of these answer choices are correct.

3. The statement of financial position is useful for all of the following EXCEPT

a) assessing a company's risk.

b) evaluating a company's liquidity.

c) evaluating a company's financial flexibility.

d) determining free cash flows.

4. The statement of financial position is useful for all of the following EXCEPTto

a) compute rates of return.

b) analyze cash inflows and outflows for the period.

c) evaluate capital structure.

d) assess future cash flows.

5. The statement of financial position is useful for analyzing all of the following EXCEPT

a) liquidity.

b) solvency.

c) profitability.

d) financial flexibility.

6.An enterprise’s ability to pay its debts and related interest is called

a) liquidity.

b) financial flexibility.

c) the amount of time expected to pass until an asset is realized.

d) solvency.

7.An enterprise’s ability to take effective actions to alter the amounts and timing of cash flows so it can respond to unexpected needs and opportunities is called

a) financial flexibility.

b) liquidity.

c) the quick ratio.

d) solvency.

8. Generally, as financial flexibility increases, the risk of enterprise or business failure will

a) increase.

b) decrease.

c) stay the same.

d) be eliminated.

9.Which of the following is NOT a limitation of the statement of financial position?

a) Many assets are reported at historical cost.

b) Judgments and estimates are used.

c) Only “hard” numbers are reported.

d) Disclosure of all pertinent information in the notes.

10.Monetary assets represent

a) only cash.

b) contractual rights to receive cash.

c) equity investments in other companies.

d) cash or claims to future cash flows that are fixed and determinable in amounts and timing.

30 explain how a budget can help management implement strategy 31 jayhawk basketball 4315191

30) Explain how a budget can help management implement strategy.

31) Jayhawk Basketballs manufactures and distributes rebounding equipment. The company is having a problem coordinating its marketing and production efforts. Every time marketing has a special promotion in a certain part of the country, production either cannot deliver the products or distribution has them in the wrong part of the country. In addition, the company has had several production stoppages due to insufficient raw material stock at the manufacturing plant.

Required:

In terms of the information system, what appears to be the main problems? What action can be taken to improve the situation?

32) Briefly explain the planning and control activities in management accounting. How are these two activities linked to each other?

21 danielle has a basis in her partnership interest of 12 000 she receives a current 4315883

21) Danielle has a basis in her partnership interest of $12,000. She receives a current distribution of $8,000 cash and equipment with a basis of $7,000. There is no potential gain under Sec. 737. What is her basis in the equipment?

A) $0

B) $4,000

C) $7,000

D) none of the above

22) Identify which of the following statements is true.

A) If a partnership asset with a deferred precontribution gain is distributed in a nonliquidating distribution to the partner who contributed the asset, the precontribution gain must be recognized by the partner.

B) The partner's basis in the partnership interest is normally reduced by the FMV of property distributed in a nonliquidating distribution.

C) When a current distribution from a partnership reduces the basis of the partnership interest to zero, the partner's interest in the partnership is terminated.

D) All of the above are false.

23) Tenika has a $10,000 basis in her interest in the TF Partnership and no remaining precontribution gain immediately before receiving a current distribution that consisted of $4,000 in money, plastic tubes held in inventory with a $3,000 basis to the partnership and an FMV of $3,375, and drip irrigation pipe held as inventory with a $6,000 basis to the partnership and an FMV of $5,000. What is the basis in Tenika's hands of the distributed property?

A) $10,000

B) $6,000

C) $9,000

D) $10,125

24) Tenika has a $10,000 basis in her interest in the TF Partnership and no remaining precontribution gain immediately before receiving a current distribution that consisted of $4,000 in money, plastic tubes held in inventory with a $3,000 basis to the partnership and an FMV of $3,375, and drip irrigation pipe held as inventory with a $6,000 basis to the partnership and an FMV of $5,000. What is Tenika's basis for the plastic tubes and drip irrigation pipe?

A)

Plastic Tubes

Drip Pipe

3,375

$5,000

B)

Plastic Tubes

Drip Pipe

$3,000

$6,000

C)

Plastic Tubes

Drip Pipe

$3,000

$5,000

D)

Plastic Tubes

Drip Pipe

$2,250

$3,750

25) The total bases of all distributed property in the partner's hands following a nonliquidating distribution is limited to

A) the partner's predistribution basis in his partnership interest.

B) the FMV of the property distributed.

C) the partnership's bases in the distributed property.

D) the predistribution FMV of the partner's partnership interest.

26) Carlos has a basis in his partnership interest of $30,000. He receives a current distribution of $6,000 cash, unrealized receivables (FMV $11,000, basis $10,000), inventory (FMV $8,000, basis $4,000), land held as an investment (FMV $7,000, basis, $6,000), and building (FMV $21,000, basis $9,000). The partners' relative interests in the Sec. 751 assets do not change as a result of the current distribution. Carlos's basis in the building is

A) $2,500.

B) $6,000.

C) $7,500.

D) $9,000.

27) Bart has a partnership interest with a $32,000 basis. He receives a current distribution of $6,000 cash, unrealized receivables (FMV $9,000, basis $10,000), inventory (FMV $8,000, basis $4,000), investment land (FMV $7,000, basis $4,000), and building (FMV $20,000, basis $8,000). No depreciation recapture applies with respect to the building. The partners' relative interests in the Sec. 751 assets do not change as a result of the current distribution. Bart's basis in the building is

A) $3,000.

B) $4,000.

C) $6,000.

D) $8,000.

28) Identify which of the following statements is true.

A) The basis for property distributed by a partnership cannot be increased above the carryover basis amount when it is received by a partner in a nonliquidating distribution.

B) A partner's partnership capital account balance cannot be less than zero.

C) The length of time a partner owns a partnership interest is relevant when determining the holding period for distributed property.

D) All of the above are false.

29) Identify which of the following statements is true.

A) If a partner sells property received in a partnership distribution for a gain and the property was inventory in the hands of the distributing partnership, the partner will always recognize ordinary income.

B) The primary purpose of Sec. 751 is to prevent partnerships from converting capital gains into ordinary income.

C) Unrealized receivables include rights to payments on the sale of a capital asset.

D) All of the above are false.

30) Identify which of the following statements is true.

A) The depreciation recapture potential for a Sec. 1245 property is not included in the definition of a Sec. 751 asset.

B) For Sec. 751 purposes, “substantially appreciated inventory” means property held for sale to customers whose market value exceeds its adjusted basis.

C) Inventory for Sec. 751 purposes includes all property except cash, capital assets, and Sec. 1231 assets assets.

D) All of the above are false.

78 ewing company planned to be in operation for three years during the first year it 4315019

78) Ewing Company planned to be in operation for three years. During the first year, it had no sales but incurred $120,000 in variable manufacturing expenses and $40,000 in fixed manufacturing expenses. In the next year, it sold half of the finished goods inventory from the previous year for $100,000 but it had no manufacturing costs. In the third year, it sold the remainder of the inventory for $120,000, had no manufacturing expenses and went out of business. Marketing and administrative expenses were fixed and totalled $20,000 each year.

Required:

a.Prepare an income statement for each year using absorption costing in the gross margin format.

b.Prepare an income statement for each year using variable costing contribution margin format.

79) Longview Golf Company sells a special putter for $20 each. In March it sold 28,000 putters while manufacturing 30,000. There was no beginning inventory on March 1. Production information for March was:

Direct manufacturing labour per unit15 minutes

Fixed selling and administrative costs $40,000

Fixed manufacturing overhead$132,000

Direct materials cost per unit$2

Direct manufacturing labour per hour$24

Variable manufacturing overhead per unit $4

Variable selling expenses per unit$2

Required:

a.Compute the cost per unit under both absorption and variable costing.

b.Compute the ending inventories under both absorption and variable costing.

c.Compute operating income under both absorption and variable costing.